Industry News

GRI Releases Latest Sustainability Reporting Guidelines

Social Investment Forum Welcomes New CEO

GRI Releases Latest Sustainability Reporting Guidelines

By: Katy Chapdelaine

In October 2006, the Global Reporting Initiative (GRI) released the most recent iteration of its guidelines for corporate social responsibility (CSR) reporting, the Sustainability Reporting Guidelines, or “G3”.  GRI, a non-profit organization based in the Netherlands, held a conference in Amsterdam to coincide with the new guidelines. 

The G3 was completed following a comprehensive stakeholder feedback process, in which KLD and organizations across the globe issued comments and recommendations for amendments to the previous version of the metrics.

The latest G3 guidelines promote the identification of areas of materiality central to each company’s operations, and recommend a simplified set of standard disclosures for all organizations.  The streamlined guidelines include topical indicators for economic, environmental, and social performance, including human rights, labor practices, and product responsibility.  The guidelines have also increased the focus of stakeholder input on core issue identification and prioritization.

Reporters are required to identify themselves as new reporters, advanced reporters, or somewhere in between, and the application levels are identified by letters A, B, and C.  Reports with external assurance will be qualified by a “+”.  Assurance demonstrates to report readers that report content was derived from documented data following defined procedures.

GRI has made key adaptations to streamline the reporting process in order to balance the growing need for information to serve various stakeholder outlets with the “survey fatigue” felt by companies.  GRI introduced an online reporting tool, which allows companies to create CSR reports in a simplified electronic format.  The format is harmonized with other reporting outlets such as the Global Compact.

The new G3 guidelines were released at GRI’s October sustainability conference.  The conference was largely attended by corporate representatives, with over 1,100 attendees from across the globe including many from developing countries. 

The conference was highlighted by presentations from key sustainability advocates, including former vice president Al Gore and Achim Steiner, executive director of the United Nations Environment Programme (UNEP).

The plenaries focused on the business case for transparency and the need for greater CSR reporting by more businesses. The GRI reporting framework has been widely adopted by companies globally, but public companies in the United States have been more reticent to disclose sustainability information. 

Among other key initiatives announced at the conferences, KLD and other investor organizations led by Ceres called on U.S. companies to increase reporting, including disclosure of key issues like carbon emissions, which are now identified as a key economic risk under the G3.

At a special conference session devoted to increased reporting, KLD presented its 2006 study completed in partnership with SIRAN, the Social Investment Research Analyst Network.  The study found that thirty-seven companies in the S&P 100 were utilizing the GRI guidelines for CSR reporting, a 48% increase from 2005.  Sustainability advocates hope the number continues to increase. 

According to Eric Fernald, Director of Research at KLD, “CSR reporting is one of the key benchmarks for communicating environmental, social, and governance performance to stakeholders”. 

This sentiment was shared by Al Gore, who ended his plenary remarks stating “The next real challenge is for companies to focus…reporting on the issues that are most material to long term performance, and this means not only providing the breadth of information requested by the GRI but also the depth of information which is the key on sustainability issues that affect long term value.”

Social Investment Forum Welcomes New CEO

In September 2006, the Social Investment Forum (SIF) welcomed its new chief executive officer, Lisa Woll.  Ms. Woll will head both SIF Ltd. and the SIF Foundation. 

Ms. Woll steps into a new position at the SIF, and has been tasked with leading the organization through the transition and growth necessary to accommodate the accelerating growth of investor interest in socially and environmentally responsible investing.

Ms. Woll will also be playing a key role in the Forum’s strategic goal of growing, promoting, and protecting the socially responsible investment industry.

Ms. Woll has 20 years of experience directing and building nonprofit organizations.  Prior to accepting the position of CEO at the SIF, Ms. Woll served as the executive director of the International Women's Media Foundation.  She has also been director of government relations and public affairs for the National Association of Service and Conservation Corps; director of the Washington operations of Save the Children; and director and author of the Convention on the Rights of the Child Impact Study.

Ms. Woll is the founder of Suited for Change, a nonprofit that provides professional clothing and ongoing career education to low-income women to increase their employment and job retention potential.  Ms. Woll also served in the Congressional office of former Congressman Lee Hamilton of Indiana. 

The Social Investment Forum is the trade association group for socially responsible investing.  The Forum has over 500 members, comprising financial planners, banks, mutual fund companies, institutional investors, research companies, foundations, and community investing institutions.

For more information, visit www.socialinvest.org